Proof Launches Portable Digital Identity Credential for Banks

Proof has made a reusable Verifiable Digital Credential generally available to banks and other organizations through its platform and APIs. The user-held credential is designed to let a person complete identity proofing once and present cryptographic evidence of that identity during later transactions.

Issuance begins with identity verification at NIST Identity Assurance Level 2 through a Kantara-certified service. Proof then gives the individual an X.509 digital certificate from its WebTrust-audited certificate authority and binds the credential to a hardware-protected key on the user’s device.

A participating institution can check the credential’s live status and determine whether it has been revoked. Support for the SD-JWT format enables selective disclosure, allowing a user to share only the identity attributes needed for a decision instead of transmitting an entire driving licence or passport.

The service supports OpenID for Verifiable Credential Issuance and OpenID for Verifiable Presentations, commonly shortened to OID4VCI and OID4VP. Organizations can use those protocols for just-in-time enrollment or to let an existing Proof credential holder authenticate and present an identity.

The launch follows updated federal Customer Identification Program guidance from the Financial Crimes Enforcement Network, Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency. The agencies said banks and credit unions may use a digital certificate or verifiable digital credential as one method of checking a customer’s identity, including credentials maintained by private third parties.

Financial institutions remain responsible for deciding whether to accept a credential and whether its issuer applies an appropriate level of authentication. The September 8 guidance did not change Bank Secrecy Act requirements or create new supervisory expectations.

Proof previously partnered with IDEMIA Public Security on privacy-preserving credentials and joined the FIDO Alliance to work on identity standards for AI agents. The new credential can also connect to Proof’s x401 protocol, which is intended to bind an agent’s action to a verified person and a specific authorization.

Proof lists wire approvals, beneficiary changes, account recovery and cross-institution interactions among the supported uses. The company says its identity infrastructure serves more than 8,000 businesses and has processed more than $1 trillion in transactions across real estate, retirement, wealth management, insurance and other regulated sectors.

Sources: Proof, Office of the Comptroller of the Currency

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By the ID Tech Editorial Team